The Portuguese Finance Minister Just Admitted: We Need A Bailout

Teixeira dos Santos

Photo: Wikimedia Commons

Portugal’s Finance Minister Fernando Teixeira dos Santos just admitted that his country needs a bailout, according to Negocios Online. In written comments in response to questions from the paper, the finance minister says (Google Translation):

I think it is necessary to refer to available funding mechanisms in the European context as appropriate to the current political situation. This will require also the involvement and commitment of major forces and political institutions.

Portugal has seen its bond yields widen dramatically today, after this morning’s debt auction resulted in the sale of 12-month bonds yielding 5.9%. Compared to the costs of borrowing from the EFSF, the EU-IMF bailout fund, and it looks ridiculous. Those costs are 5.7% over 5-years.

Don’t miss: The lastest on the debt situation in Europe >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.